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Topic: Business
Number of pages / Number of words: 5 / 1260
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But when looking at the receivables turnover and inventory turnover, which are both way above average, this seemingly low liquidity could just be a result of a strong ability to handle its assets. The high turnovers would indicate that the company has no problem with raising the cash to meet its financial obligations...


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As noted above, this would indicate a strong ability to generate cash and handle its assets well. The total asset turnover was staying at average or a little above until the last few years. This decrease in asset turnover was caused by a large increase in goodwill and intangibles for 2006 and 2007. This would be no cause for concern with the company’s profit margin staying well above average...


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